HMV to open dozens of new stores as vinyl sales surge
HMV plans to open as many as 70 new stores over the next two years in a vote of confidence in the high street.
Doug Putman, the music entrepreneur who bought HMV from administration in 2019, said that “when everything is shrinking, it’s a good time to grow”.
The chief executive said that increasing the number of stores from 107 to “150 to 180” was “doable, no problem” if it secures the right space and rents in the next couple of years. “It comes down to the appetite of landlords,” he added.
Mr Putman, who is celebrating the chain’s 100th birthday this week by opening a new shop in Solihull, is still hunting for a flagship store in London after a couple of deals fell through at the last minute, he said.
He is bullish about the enduring appeal of physical entertainment despite the continuing rise of streaming and the recent decision by Sainsbury’s to stop selling CDs and DVDs in stores.
“I’m surprised it took this long, we thought they would exit a lot sooner,” the Canadian said.
“They [grocers only] have one or two titles that are successful. We don’t look at it as a negative - we can pick up some HMV customers that haven’t shopped with HMV in a while.”
The chain will stock more apparel, gadgets and books as well as CDs, DVDs and vinyl in a bid to attract a broader range of shoppers to its stores.
The chain, which opened its first store in 1921 at 363 Oxford Street, is predicting its biggest year for vinyl sales since the late Eighties as records make a comeback.
“People feel like the industry is dead and gone - it still has a big, dedicated following,” Mr Putman added.
The BPI, the industry’s trade body, predicts UK sales of vinyl albums will exceed 4m – the highest since it began collecting data in the early 1990s.
HMV's online business has also done well during the pandemic, helping to offset the loss of store sales.
It is the only dedicated chain left selling physical music following the demise of Virgin Megastores, Tower Records and Our Price.
HMV opened its biggest store in late 2019 in Birmingham - the 25,000 sq ft Vault.
